Slide 1: 2022FY Results Presentation
2022FY Results Presentation 16 March 2023
Slide 2: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements regarding future events and the future results of Rai Way that are based on current expectations, estimates, forecasts, and projections about the industries in which Rai Way operates, as well as the beliefs a
Slide 3: Rai Way participants
Rai Way participants ● Aldo Mancino, Chief Executive Officer ● Adalberto Pellegrino, Chief Financial Officer ● Giancarlo Benucci, Chief Corporate Development Officer 2022FY Results Presentation 3
Slide 4: Another year of solid organic growth
Another year of solid organic growth Mln Eur; % Adj. EBITDA (pre and after leases1) Adjusted EBITDA margin (pre and after leases1) Pre leases Pre leases 154 After leases 151,0 After leases 142,9 +654bps 136,1 62,2% 61,5% 131,2 60,6% 59,3% 115,5 118,3 53,4% 109,3 111,3 132,8 140,4 50,7% 51,5% 51,7% 5
Slide 5: Key messages on 2022
Key messages on 2022 ● Strong financial performance despite severe energy headwind FINANCIAL RESULTS o Underlying top-line organic growth of ca. 6% supported by development activities and CPI; Third-party up double-digit o Excluding the increase in energy bill, higher revenues flowed entirely to Adj
Slide 6: Rai Way broadcast network post-refarming
Rai Way broadcast network post-refarming National DTT networks for Rai Regional networks Population Technical • T2-ready networks, MPEG4/HEVC; average capacity available: Max: ~22 Mbps (DVB-T) N. sites Coverage features – Max: ~40 Mbps (DVB-T2) • DVB-T2 capacity substantially fully allocated T2-read
Slide 7: DC & Edge: digitalization (and 5G) support strong outlook
DC & Edge: digitalization (and 5G) support strong outlook 1994 2003 2022 THE FIRST INTERNET THE SECOND INTERNET THE THIRD INTERNET THE FOURTH INTERNET 4.4 Mln Nodes 285 Mln Nodes 1 Trillion Nodes INFORMATION ECONOMY PLATFORM ECONOMY TOKEN ECONOMY Web Enterprise Software E-Commerce Mobile Web3 IoT 5G
Slide 8: The new digital infrastructure: progress update
: the new digital infrastructure Infra project Progress update 100% >>> 0% Activity progress: Regional edge Local edge Hyperscale Working plan & RW sites selection Concept design Final design First 8 construction (~2,3 MW) Working plan & RW sites selection Concept design Final design construction Ot
Slide 9: New infrastructure projects: expected cash profile
New infrastructure projects: expected cash profile ILLUSTRATIVE PURPOSE ONLY Capacity utilization € Construction ramp-up Run rate 8-10X CAPEX/ EBITDA ≥10% Unlevered EBITDA IRR Limited maintenance capex level t0 t Start of 2022FY Results Presentation 9 operation
Slide 10: Update on ESG
Update on ESG ENVIRONMENT SOCIAL GOVERNANCE INNOVATION ✓●● 100% green electricity ✓●● 35% women in mgnt roles 3 ✓● 99% waste recovery 1 ✓ agile working scheme up ● 80% of registered suppliers ● About € 200m Sustainability ✓ €more 100+ m investments in to 45% of employees to be engaged on ESG to be i
Slide 11: 2022FY Financial highlights
2022FY Financial highlights Mln Eur; % % YoY growth Core Revenues Adjusted EBITDA Net Income Adjusted EBITDA margin +6,7% +12,7% +5,7% 73,7 229,9 245,4 151,0 65,4 142,9 62,2% 61,5% 59,4% 2021FY 2022FY 2021FY 2022FY 2021FY 2022FY Capex(1) Net debt (Net Cash) Cash conversion(2) Net Debt / Adjusted EBI
Slide 12: Core Revenues
Core Revenues Mln Eur; % % YoY growth +6,7% ● RAI Fixed Consideration up 6,1% (or 5,1% excluding € 2,0m one-off 245,4 amount paid by RAI in 3Q22 to terminate a minor service related to an 229,9 34,9 +13,6% old radio transmission technology) driven by CPI escalator and full Third-Parties 30,8 6,2 imp
Slide 13: Opex (excluding non-recurring)
Opex (excluding non-recurring) Mln Eur; % % YoY growth +8,4% 94,9 87,6 ● Excluding non-recurring benefits and higher capitalization compared to 2021, stable underlying personnel cost 43,7 Personnel -2,9% 45,0 costs ● Electricity bill up € 8,5m vs 2021 (€ +1,4m in 4Q) with rise in energy prices only
Slide 14: P&L
P&L Eur Mln, % 4Q2021 4Q2022 % YoY 2021FY 2022FY % YoY Core Revenues 58,2 61,1 4,9% 229,9 245,4 6,7% (1) Other Rev enues & income 0,0 0,1 0,6 0,5 Adj. EBITDA 33,0 35,4 7,3% 142,9 151,0 5,7% % margin 56,6% 57,9% 62,2% 61,5% ● 2022FY Net Income up by 12,7% at € 73,7m as a result of: Non recurring cost
Slide 15: Net Debt bridge
Net Debt bridge Mln Eur Net Debt/ 1y rolling Adj. EBITDA 105,0 87,9 0,70x 65,2 0,61x 1,5 (15,4) 8,6 IFRS-16 Debt 40,1m 28,1 Gross Debt 101,5m Cash&Eq(5) -36,7m (151,0) 80,2 Including € 62,8 m of development capex Net Debt 2021YE EBITDA Capex(1) Taxes(2) Financial Δ NWC Funds & Dividend Net Debt 2022
Slide 16: 2022 Recurring cash generation and dividend proposal
2022 Recurring cash generation and dividend proposal Mln Eur Dividend proposal ● Dividend proposal of 27,45 €cent/share (pay-out ratio of 100% of Net Income), with a dividend yield(4) of 4,9% 74 140 ● Including the proposed dividend for 2022, approx. € 496m -2 distributed to Shareholders since listi
Slide 17: Guidance 2023
Guidance 2023 ● Outlook based on recent levels of power futures for 2023(1) - CPI-link Adjusted Growth rate - Rising contribution from regional refarming EBITDA in the mid-teens area - Lower energy prices(1) and lower consumption - Start-up costs related to new infrastructure/services • Maintenance
Slide 18: Strategy and ambitions confirmed in current environment
Strategy and ambitions confirmed in current environment Contractualized revenues provide high visibility and cash generation Unchanged Resiliency commitment to of the business capital deployment model Supportive scenario • Top-line not linked to economic cycle • Net benefit from inflation • Digitali
Slide 19: Q&A session
Q&A session 2022FY Results Presentation 19
Slide 20: Contacts
Contacts - Investor Relations +39 06 331 73973 +39 06 331 74815 investor.relations@raiway.it 2022FY Results Presentation 20
Slide 21: Appendix
Appendix 2022FY Results Presentation 21
Slide 22: Balance sheet
Balance sheet Mln Eur Including rights of use for leasing under IFRS-16 (€ 33,4m) (29,8) (23,4) 281,2 105,0 334,3 176,2 Net Fixed Assets(1) Net Net Funds(2) Net Invested Net Debt Equity Book Value Working Capital Capital 1) Including long-term financial items and the rights of use for leasing introd
Slide 23: Detailed summary of Income Statement
Detailed summary of Income Statement (€m; %) 4Q21 4Q22 FY21 FY22 Core revenues 58,2 61,1 229,9 245,4 1) Other rev enues and income 0,0 1,4 0,6 3,1 Purchase of consumables (0,5) (0,5) (1,5) (1,5) Cost of serv ices (10,6) (13,3) (38,2) (49,0) Personnel costs (13,7) (11,9) (45,4) (43,7) Other costs (0,
Slide 24: Summary of Balance Sheet
Summary of Balance Sheet (€m) 2021FY 2022FY (€m) 2021FY 2022FY Shareholders' Equity Non current assets Share capital 70,2 70,2 Tangible assets 244,5 280,8 Legal reserv es 14,0 14,0 Rights of use for leasing 31,5 33,4 Other reserv es 37,3 38,2 I ntangible assets 17,2 19,5 Retained earnings 64,4 73,7
Slide 25: Summary of Cash Flow Statement
Summary of Cash Flow Statement (€m) 4Q2021 4Q2022 FY2021 FY2022 Profit before income taxes 17,7 23,3 89,9 101,8 Depreciation, amortization and w rite-dow ns 13,8 11,4 50,5 47,2 Prov isions and (releases of) personnel and other funds 4,3 2,5 5,2 2,8 Net financial (income)/expenses 0,0 0,7 1,0 1,9 Oth